Question

Peter Chang is the owner of Adventure Cinemas. He owes his ex-wife 10 years of child support payments and, as a result, the courts have placed a lien against all of Peter's assets. What type of general lien is this?

Answer 1

A lien against all of Peter Chang's assets due to unpaid child support is a general lien, affecting all property rather than a specific asset, and is commonly a judgment lien.

Step-by-step explanation:

The situation described involves a general lien on Peter Chang's assets due to unpaid child support payments. A general lien affects all of the property of the debtor, rather than a specific asset. In the case of child support, when the courts enforce a lien, it commonly results in a judgement lien which gives the creditor the right to receive the proceeds from the sale of the debtor's assets to cover the unpaid debt.

The type of general lien that has been placed against all of Peter Chang's assets is a judgment lien. A judgment lien is a type of lien that is granted by a court when a creditor takes legal action to collect a debt owed by a debtor. In this case, because Peter Chang owes his ex-wife child support payments, the courts have granted a lien against his assets to ensure payment.